Debunking a Viral Crypto Claim: No Bill Allows Paying Taxes in Bitcoin or Removes Capital Gains Tax
Debunking a Viral Crypto Claim: No Bill Allows Paying Taxes in Bitcoin or Removes Capital Gains Tax
Recently, a post on X (formerly Twitter) went viral, claiming breaking news about a groundbreaking U.S. bill. The post, accompanied by a video clip appearing to be from Fox Business, stated:
"🚨 BREAKING: New US bill lets you pay taxes in Bitcoin AND removes capital gains tax on BTC. 🔥😱🔥
THE GOVERNMENT RECOGNIZING BTC AS REAL MONEY!!! ⚡️🔥⚡️"
The attached media showed a Fox Business screen with a Bitcoin price ticker at around $90,869 (up $711), and a prominent chyron (on-screen text banner) reading: "BILL LOOKS TO CODIFY BITCOIN RESERVE EXEC ORDER" in exclusive style. An anchor was speaking in the background.
This post garnered significant engagement, with thousands of likes, reposts, and comments expressing excitement, skepticism, or concern about government involvement in Bitcoin.
Is This True?
No, the viral claim is false. Here's a breakdown based on thorough research:
The Chyron and Clip Are Real (Partially):
There is legitimate news coverage from early 2025 about U.S. legislation related to a "Bitcoin reserve." In March 2025, President Trump signed an executive order establishing a Strategic Bitcoin Reserve, primarily using seized Bitcoin from criminal proceedings (estimated ~200,000 BTC at the time). This was followed by bills in Congress to codify (make permanent via law) that executive order.- Senator Cynthia Lummis (R-WY) reintroduced the BITCOIN Act of 2025 (S. 954), aiming to expand the reserve by purchasing up to 1 million BTC over five years.
- House members, like Rep. Byron Donalds, introduced companion bills to lock in the reserve.
These efforts focus on treating Bitcoin as a strategic asset (like gold) for national financial security, not selling seized holdings prematurely.
The exact chyron text — "BILL LOOKS TO CODIFY BITCOIN RESERVE EXEC ORDER" — aligns with real headlines from that period. Fox Business and other outlets covered the reserve developments extensively.
The Exaggerated Claims Are False:
- No provision allows paying federal taxes in Bitcoin. U.S. taxes must be paid in USD; Bitcoin is treated as property by the IRS, not legal tender for tax obligations.
- No removal of capital gains tax on Bitcoin. In fact, Bitcoin transactions (selling, trading, or spending) trigger capital gains taxes. None of the 2025 bills (BITCOIN Act or related) propose eliminating this. Some pro-crypto proposals discuss clearer regulations or no new taxes, but nothing abolishes existing capital gains treatment.
- Recognizing Bitcoin as a "reserve asset" does not equate to treating it as "real money" for everyday transactions or tax payments. The reserve is a government holdings strategy, similar to oil or gold reserves.
Why It Spread So Fast:
The video clip likely originates from actual Fox Business coverage of the Bitcoin reserve news (Bitcoin was trading in the $80k–$90k range in early-mid 2025). However, the post's text overlays sensational, unsubstantiated claims on top of real (but limited) developments. This is a common tactic in crypto hype cycles — mixing truth with exaggeration to drive engagement. No major news outlet reported the tax-related claims because they aren't real.
What’s Actually Happening with U.S. Bitcoin Policy in 2025?
As of late 2025:
- The Strategic Bitcoin Reserve exists via executive order and is being codified through legislation like the BITCOIN Act.
- Goals: Hold seized BTC long-term, potentially buy more (in Lummis's version), and position the U.S. as a leader in digital assets.
- No radical changes like tax-free BTC or tax payments in crypto have passed or been seriously proposed in these bills.
- Broader pro-crypto moves under the Trump administration include clearer regulations and opposition to CBDCs, but tax treatment remains unchanged.
Final Thoughts
Bitcoin's integration into national policy is a real and evolving story — the Strategic Reserve is a historic step toward institutional adoption. But viral posts like this one distort the facts, leading to misinformation. Always verify claims against primary sources (e.g., Congress.gov for bills, official White House statements).
HODL responsibly, and remember: If it sounds too good (or revolutionary) to be true in crypto policy, it probably is.
Sources: Congress.gov (S. 954 BITCOIN Act text), White House fact sheets (March 2025 EO), Fox Business archives, and related reporting from The Hill, Decrypt, and Bloomberg.
#Bitcoin #CryptoPolicy #StrategicReserve #FactCheck
(Image: Screenshot from the viral post showing the Fox Business chyron – note the accurate reserve codification text but misleading post caption.)